CUNA is evaluating the Consumer Financial Protection Bureau’s (CFPB) new, 1,600-plus page rule on prepaid cards to make sure credit unions are minimally affected.
CUNA is assessing compliance costs for credit unions offering prepaid accounts that could be associated with the new regulatory requirements released Wednesday. The CFPB rule would apply Regulation Z--Truth in Lending--requirements to certain prepaid accounts.
CUNA Deputy Chief Advocacy Officer Elizabeth Eurgubian underscored, “CUNA supports the goals of safe and transparent disclosures and appropriate protections on prepaid accounts, which offer many benefits to consumers, many of whom are underserved.”
However, she stressed that it is important to consumers that the new rule not impede credit unions’ ability to offers their consumer-friendly versions of this type of account.
A CUNA study, conducted with Cornerstone Advisors, found that overall regulatory burden cost credit unions $7.2 billion in 2014, including $6.1 billion in regulatory costs and $1.1 billion in lost revenue.